WHY WOMEN SHOULD HAVE INFLUENCE ON THEIR MONEY! – Part Deux

http://articles.timesofindia.indiatimes.com/2013-06-23/india/40146779_1_working-women-investment-decisions

The high light of this article being the line , ‘Less than one in five single working women, excluding those divorced and widowed, take their own investment decisions.’

The first part of our series spoke about how women should have basic investments in PPF ( Public Provident Fund) and buy a Health Insurance policy, we are now going to talk about another important aspect of a woman’s requirements.

CRITICAL ILLNESS

What is a Critical Illness?

I critical illness is a life threatening illness, that often keeps one of their working life until recovery.

What is a Critical Illness cover?

A Critical Illness cover offers a fixed sum pay out incase one is diagnosed with a Critical Illness .

Why we need it?

While a Health Insurance Cover takes care of us in the case of any hospitalization requirement and a life insurance cover pays out the nominees in case of death a Critical Illness takes care of one in a scenario where one survives an illness but cannot continue to work in the same way they did earlier.

What are Critical Illnesses?

Alzheimer’s Disease
Angioplasty
Invasive Treatment for Coronary Artery Disease
Blindness

These are Stroke, First Heart Attack, Multiple Sclerosis, Paralysis, Coronary Artery Surgery, Major Organ Transplant, Cancer and Kidney Failure etc.

SCENARIO:

Let’s assume a scenario where a single/ married working woman is diagnosed with a Critical Illness :

Monthly income : Rs 90,000

Cannot work for : 15 months (until fit mentally and physically again)

Loss of income:  Rs 13.50L

Question being , who will take care of this requirement? The only option is a Critical Illness policy. While Critical Illness policies may be slightly more expensive than a health insurance they are of utmost importance as the Sum Assured is paid out on diagnosis of the illness and the money is a huge relief in a scenario where one has to deal with not only the loss of income but also huge medical bills.

Our recommendation: anything between 6-15 months, but a minimum of 6 months for certain.

Do write to us : talktous@thefinancialalphabet.in for any specific queries.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s